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Debt Settlement Offer Letter | Sample Template

A debt settlement offer is a legal document that proposes a new arrangement to resolve a debt. Generally, the debtor sends this letter to suggest a one-time payment, which is less than the full amount owed, in exchange for the creditor forgiving the remaining balance.
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After Signing

Once the letter is approved, the parties will create a debt settlement agreement, or in some cases, a receipt may be sufficient to confirm the debt has been settled.

Sample

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SETTLEMENT OFFER

[DEBTOR’S NAME]
[STREET ADDRESS]
[CITY, STATE, ZIP CODE]
[PHONE]
[E-MAIL]

Date: [DATE]

RE: OFFER FOR RELEASE OF CLAIMS

Dear [CREDITOR’S NAME],

1. CLAIMS. I, [DEBTOR’S NAME], am writing this letter regarding a financial claim made against me described as: [DESCRIBE THE DEBT].

2. OFFER. I am willing to make the following legally binding offer for a full and final release of any and all claims against me:

Single-Payment: [TEXT AMOUNT] Dollars ($[NUMERICAL AMOUNT]). Due to current financial hardships, this is all I can afford at this time.

Recurring Payments: [TEXT AMOUNT] Dollars ($[NUMERICAL AMOUNT]) paid on the [DAY] of every Week Month until the end date of [DATE].

3. CONTACT. If you should accept my offer, payment will commence and be made immediately. Feel free to contact me to further discuss this matter via the details below:

E-Mail: [E-MAIL]
Phone: [PHONE]
Address: [ADDRESS]

Sincerely,
_____________________